Additional Superintendent of Police Sanjay Kumar Singh said the operation was based on intelligence inputs.
Muhammad Alam, allegedly the owner of the illegal arms factory at Bardah village has been nabbed but his two. accomplices managed to flee when the raid was being conducted.
Singh said Alam is a habitual offender and has been jailed earlier also on the charges of manufacturing illegal weapons.
The ASP said the recovery of .22 bore ammunition hint that the miscreants were also trying to make pistols of this calibre.